US Trade Law Update: October 2016

This bulletin is courtesy of the Law Offices of Nithya Nagarajan, LLC

U.S. DEPARTMENT OF COMMERCE DECISIONS

Investigations:

  • On September 7, 2016, Commerce announced its affirmative preliminary determination in the CVD investigation of certain imports of certain carbon and alloy steel cut-to-length (“CTL”) plate from the People’s Republic of China and its negative preliminary determination in the CVD investigation of imports of CTL plate from the Republic of Korea
  • On September 12, 2016, Commerce announced its affirmative preliminary determination in the antidumping duty investigation of imports of stainless steel sheet and strip from the People’s Republic of China
  • On September 13, 2016, Commerce issued antidumping orders on heavy walled rectangular welded carbon steel pipes from Korea, Mexico and Turkey.
  • On September 16, 2016, Commerce announced its affirmative preliminary determinations in the antidumping duty investigation of imports of certain carbon and alloy steel cut-to-length plate from Brazil, South Africa, and Turkey.
  • On September 23, 2016, Commerce announced its affirmative final determinations in the antidumping and countervailing duty investigations of imports of welded stainless pressure pipe from India.
  • On September 30, 2016, Commerce announced its affirmative preliminary determination in the antidumping duty investigation on R-134a from China.

New Petitions:

  • No new investigations were initiated in September.

Administrative Reviews:

  • On September 2, 2016, Commerce finalized the preliminary results from the administrative review of the antidumping order on oil country tubular goods from Taiwan. Commerce continued to find that Tension Steel did not make sales of subject merchandise at less than normal value.
  • On September 8, 2016, Commerce announced the final results of the administrative review of the antidumping duty order on certain activated carbon, finding that sales were made at less than normal value.
  • On September 8, 2016, Commerce published the final results of the administrative review of the antidumping order on certain preserved mushrooms from India. The review resulted in a recalculation of the weighted average dumping margin.
  • On September 9, 2016, Commerce finalized the preliminary results of the antidumping review on small diameter graphite electrodes from China, finding that certain companies sold subject merchandise at less than normal value.
  • On September 12, 2016, Commerce published the final results of the administrative review of the antidumping order on uncovered innerspring units from China. Commerce found that innersprings are being, or are likely to be, sold at less than fair value in the United States.
  • On September 12, 2016, Commerce announced the final results of the administrative review of the antidumping duty order on large residential washers from Mexico.
  • On September 12, 2016, Commerce announced the final results of the administrative review of the antidumping duty order on large residential washers from Korea.
  • On September 13, 2016, Commerce announced the final results of the administrative review of the antidumping duty order on certain frozen warmwater shrimp from India.
  • On September 19, 2016, Commerce announced the final results of the countervailing duty administrative review and new shipper review for certain cut-to-length carbon-quality steel plate from Korea.

Sunset Reviews:

  • On September 8, 2016, Commerce found, in an expedited sunset review, that revoking the antidumping order on certain hot-rolled flat-rolled carbon-quality steel products from Russia would result in a continuation of dumping.
  • On September 22, 2016, Commerce found that revoking the antidumping orders on narrow woven ribbons with woven selvedge from China and Taiwan as well as the countervailing duty order on the same product from China would result in a continuation of dumping.

Sunset Reviews Scheduled for Initiation:

  • Artist Canvas From China (2nd Review)
  • Pure Magnesium from China (4th Review)

 

U.S. CUSTOMS AND BORDER PROTECTION

  • On July 18, 2016, the U.S. and Vietnam signed an agreement that resolves two World Trade Organization disputes brought by Vietnam relating to antidumping duty measures on imports of shrimp from Vietnam.
  • A U.S. importer of glycine is suing its German supplier for supplying the importer with glycine which was determined by U.S. Customs and Border Protection to have been produced in China.
  • On June 29, 2016, Special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HIS) seized nearly 60 tons of illegally imported Chinese honey.

U.S. INTERNATIONAL TRADE COMMISSION

Section 701/731 Proceedings

  • On September 2, 2016, the ITC voted to continue the investigation on emulsion styrene-butadiene rubber from Brazil, Korea, Mexico, and Poland that are allegedly sold in the U.S. at less than fair value on the basis that determined that there is a reasonable indication that U.S. Industry is materially injured by reason of imports.
  • On September 2, 2016, the ITC announced its final injury determination in its antidumping and countervailing duty investigations concerning imports of cold-rolled steel flat products from Brazil, India, Korea, Russia, and the UK. The Commission determined that an industry in the U.S. is materially injured or threatened with material injury by reason of imports of these products from Brazil, India, Korea, and the UK.
  • On September 12, 2016, the ITC announced its final determinations in the antidumping and countervailing duty investigations concerning imports of hot-rolled steel flat products from Australia, Brazil, Japan, Korea, the Netherlands, Turkey, and the UK. The Commission determined that an industry in the U.S. is materially injured by reason of imports of these products from Australia, Brazil, Japan, Korea, the Netherlands, and the UK, and imports of these products from Turkey are sold in the U.S. at less than fair value.  The Commission further found that imports subsidized by the government of Turkey are negligible and no countervailing duty order will be instituted on imports from Turkey.

Section 337 Proceedings

  • On September 8, 2016, the ITC voted to institute an investigation of certain athletic footwear. The products at issue in the investigation are athletic running and training footwear with specific sole technology.
  • On September 12, 2016, the ITC voted to institute an investigation of certain krill oil products and krill meal for production of krill oil products. The products at issue in this investigation are krill meal, for use in producing krill oil to be taken as a dietary supplement, and krill oil made from krill meal (including krill oil capsule form) that can be taken as a dietary supplement.
  • On September 14, 2016, the ITC voted to institute an investigation of certain industrial control system software, systems using the same, and components thereof. The products at issue in the investigation are programmable industrial controllers and associated software used for the automation of industrial processes in facilities such as factories, warehouses, and utilities.
  • On September 15, 2016, the ITC voted to institute an investigation of certain personal transporters and components thereof. The products at issue in the investigation are self-balancing, electric vehicles for carrying a person.
  • On September 19, 2016, the ITC voted to institute an investigation of certain sleep-disordered breathing treatment mask systems and components thereof. The products at issue in the investigation are masks that are used in continuous positive airway pressure therapy systems.

Sunset Review Initiations

  • Sulfanilic Acid from India, PRC
  • Carbon and Alloy Seamless Standard, Line, sure Pipe (Over 41⁄2 Inches) from Japan, Romania

Sunset Review Decisions

  • On September 8, the Commission ruled that the revocation of the antidumping duty order on certain hot-rolled flat-rolled carbon- quality steel products (hot-rolled steel) from the Russian Federation (Russia) would be likely to lead to continuation or recurrence of dumping.

U.S. Court of International Trade

  • No major decisions issued by the CIT or CAFC in September.

Nithya Nagarajan

Nithya Nagarajan
Law Offices of Nithya Nagarajan, LLC
Tel: +1 202-656-2448 | Cel: +1 301-807-1286
E: nithya@intl-tradelaw.com | W: www.intl-tradelaw.com

Other Trade Matters

  • Chinese steel companies have requested that the ITC dismiss U.S. Steel’s Section 337 case against them for failure to assert an actual injury. U.S. Steel has accused the Chinese government of stealing trade secrets on behalf of the country’s state-run steel industry.
  • The WTO’s appellate body ruled against the United States’ methodology in Korean washer machine antidumping cases. The ruling is significant due to its focus on the Commerce Department’s practice of “zeroing” – or disregarding negative dumping margins – which drive margins up.
  • Another antidumping methodology matter is causing a stir in the trade remedy world as lawyers debate on a proposed shift in the way Commerce deals with determining normal value for products from market economies. The proposal is seen to be in anticipation of China’s potential move to market economy status later this year.
  • A September 14th meeting between Canadian and U.S. officials regarding a deal over softwood lumber did not produce results with less than a month left for negotiation. Canadian Minster of International Trade Chrystia Freeland told reporters that Canada is “prepared to fight” and will continue with litigation over the matter if negotiations do not produce an equitable result for Canadian lumber producers.
  • The Chinese aluminum industry will testify on September 29th before an ITC fact-finding hearing about that nation’s export policies and subsidies. The Section 332 investigation was requested by the House Ways & Means Committee earlier this year and will supplement the already-underway multilateral talks between the two governments on how to address the misclassification of Chinese aluminum to avoid certain duties.
  • The Sweeteners Users Association has inserted itself into the renegotiation of the U.S.-Mexico sugar suspension agreements. The association, which represents end-users of refined sugar, has requested two aspects of the original agreement be changed to lower prices of raw and refined sugar; specifically, those changes are an agreement to support prices used in the 2014 Farm Bill and an increase in the stocks-to-use target ratio.